Benchmark stock market indices continued their upward trend on Thursday, following global markets that have been buoyed by expectations of renewed peace talks between Iran and the US. The positive sentiment was further boosted by a decrease in crude oil prices.
The S&P BSE Sensex surged by 550.07 points to reach 78,661.31, while the NSE Nifty50 climbed by 158.10 points to 24,389.40 by 9:27 am.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, highlighted that the indications from the crude oil and US stock markets suggest a potential swift resolution to the West Asian conflict. Brent crude prices have retreated to $95 from a recent high of $119, and the S&P 500 and Nasdaq hit new record highs, signaling optimism in the markets for an early end to the conflict.
At the opening bell, Eternal Ltd emerged as the top gainer on the Sensex, rising by 2.47%. This was followed by Bajaj Finance Ltd with a gain of 1.70%, Infosys Ltd up by 1.65%, Bharat Electronics Ltd adding 1.49%, and Tech Mahindra Ltd increasing by 1.46%.
Conversely, Sun Pharmaceutical Industries Ltd experienced the most significant drop, declining by 0.54%, while Titan Company Ltd fell by 0.36% and Reliance Industries Ltd slipped by 0.07% in early trading.
Vijayakumar noted the outperformance of mid and small-cap stocks compared to large caps, with the small-cap index slightly surpassing pre-war levels and the mid-cap index only marginally lower by approximately 0.5%. The Nifty, however, remains down by about 3.8% from pre-war levels, primarily due to significant foreign institutional investor (FII) selling. He anticipated the continued outperformance of the broader market in the short term.
He advised investors to monitor stocks hitting 52-week highs even in a weak market, as they reflect strong fundamentals and strategic accumulation by savvy investors.